It has been about a month since the last earnings report for Sarepta Therapeutics (SRPT Quick QuoteSRPT - Free Report) . Shares have lost about 1.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Sarepta Therapeutics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Q1 Earnings and Sales Beat Estimates

Sarepta reported an adjusted loss of 97 cents per share in the first quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of $1.46. However, the figure was wider than the year-ago quarter’s loss of 56 cents per share.

Sarepta recorded total revenues of $253.5 million, up 20.2% year over year. Revenues beat the Zacks Consensus Estimate of $223.2 million. The year-over-year increase in revenues was driven by the sales of Sarepta’s three currently approved RNA-based PMO therapies for DMD,Exondys 51, Vyondys 53 and Amondys 45.

Quarter in Detail

The company derived product revenues of $231.5 million, up 23.0% year over year. The upside was driven by an increase in demand for its DMD products.

The company recorded $22.0 million in collaboration revenues, primarily from its licensing agreement with Roche. In the year-ago period, management had recorded $22.0 million as collaboration revenues, which were also received from Roche.

Adjusted research and development (R&D) expenses totaled $220.7 million in the first quarter, up 27.5% year over year. This surge is attributable to the increase in manufacturing expenses for ramping up production for SRP-9001.

Adjusted selling, general & administrative (SG&A) expenses were $83.3 million, up 56.6% year over year. The upside was driven primarily by an increase in professional service expenses incurred by the company to prepare for a potential launch of SRP-9001.

2023 Guidance

The company reiterates its product revenue guidance for the full year. Management expects to generate more than $925 million in product revenues from its three approved PMO therapies.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -5.88% due to these changes.

VGM Scores

At this time, Sarepta Therapeutics has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Sarepta Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Sarepta Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Alkermes (ALKS Quick QuoteALKS - Free Report) , has gained 1% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.

Alkermes reported revenues of $287.6 million in the last reported quarter, representing a year-over-year change of +3.3%. EPS of $0.01 for the same period compares with $0.12 a year ago.

For the current quarter, Alkermes is expected to post earnings of $0.16 per share, indicating a change of +166.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +72.1% over the last 30 days.

Alkermes has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.